Bridging the Gap on Infrastructure

By

Richard Barley

Updated Sept. 23, 2009 12:01 am ET

If you build it, they will come. But first you must borrow the money. That is the challenge for infrastructure funds, which are discovering they mightn't be immune to the credit crunch after all. The orthodox thinking is that infrastructure is in a sweet spot, buoyed by government efforts to combat the crisis and investor appetite for stable long-term cash flows hedged against inflation. But despite a massive global infrastructure deficit, an anticipated tide of deals has yet to materialize.